GBPUSD has print yet another high above 1.3400 mark, as bulls might be targeting 1.3500 handle before reversing. Please note that 1.3500 is a major past resistance, and a print above that confirms long term trend reversal in the currency pair.
GBPUSD probable wave counts are as follows: GBPUSD had dropped to multi-year lows at 1.1414 in March 2020. Since then, bulls have remained in control and managed to print a series of higher highs and higher lows through 1.3400 mark.
The wave counts labelled here might change once 1.3500 handle is taken out. A larger degree impulse wave would complete at 1.3500 and GBPUSD would then prepare for a meaningful corrective drop. For now, all eyes are set towards major resistance around 1.3500 and is just a matter of time to be taken out.
Immediate support is seen through 1.3050, while the net in line resistance is at 1.3500 levels respectively. The fibonacci 0.618 retracement of entire rally between 1.1414 and possibly 1.3500 mark is seen towards 1.2160/70 mark.
GBPUSD bulls might come back strong if prices managed to drop through 1.2150/70 levels going forward. Also note that the lower degree Wave 4 termination is also just below the 1.2100 mark. High probability remains for a bullish bounce if prices manage to reach there.
Traders might be waiting to sell again on a break above 1.3500 handle. The protective stop would go above swing highs with projected targets below 1.2200 mark respectively.
Technical Analysis Team
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